Chapter 4
Books of Original Entry and Ledgers (II)
SHORT QUESTIONS
B2C04T2Q001eng
Write up a two-column cash book to record the following transactions. Then balance it off at the end of the month.
2009
Jul 1
"
"
"
"
"
"
"
"
"
"
"
"
"
3
5
7
11
12
13
19
21
22
23
25
27
30
$
3,250
6,800
2,500
1,200
3,700
1,880
50
720
300
500
1,250
10,000
350
800
1,000
Cash balance b/d
Bank balance b/d
Cash sales made.
Cash banked.
James Chong paid us by cheque.
Bought office equipment by cheque.
Paid Linda Kee in cash.
Received a rates refund by cheque.
Withdrew cash from the bank for business use.
Paid wages in cash.
Paid for motor repairs by cheque.
Received a bank loan by cheque.
Karen Choi paid us in cash.
Paid sundry expenses in cash.
Paid insurance by cheque.
Answer:
Cash
$
Cash Book
Bank Date
$ 2009
1 Balances b/d
3,250
6,800 Jul
"
3 Sales
2,500
"
"
5 Cash
7 James Chong
"
13 Rates – Refund
"
"
19 Bank
23 Bank loan
300
"
25 Karen Choi
350
Date
2009
Jul
Aug
Details
1 Balances b/d
Details
5 Bank
"
11 Office equipment
1,200
3,700
"
"
12 Linda Kee
19 Cash
720
"
21 Wages
10,000
"
"
22 Motor expenses
27 Sundry expenses
"
30 Insurance
"
31 Balances c/d
6,400
22,420
3,850
17,990
Cash
$
Bank
$
1,200
1,880
50
300
500
1,250
800
1,000
3,850
6,400
17,990
22,420
B2C04T2Q002eng
Prepare a petty cash book with analysis columns for stationery, motor expenses, cleaning expenses, sundry expenses
and ledger account. The amount spent was reimbursed on 1 May 2009.
(14 marks)
2009
Apr 1
"
5
"
6
" 11
" 16
" 20
" 23
" 27
" 29
$
Received $3,000 as the petty cash float.
Cleaning expenses
Postage stamps
Paper clips
Paid Brian Tse, a trade creditor.
Envelopes
Petrol
Delivery van repairs
Cleaning expenses
400
46
125
350
40
500
1,100
400
Answer:
Petty Cash Book
Receipt
Date
$ 2009
3,000 Apr
"
"
"
"
"
"
"
"
"
3,000
39 May
2,961
"
Details
Total
Stationery
$
1
5
6
11
16
20
23
27
29
Cash
Cleaning expenses
Postage stamps
Paper clips
Brian Tse
Envelopes
Petrol
Delivery van repairs
Cleaning expenses
30 Balance c/d
1 Balance b/d
1 Cash
400
46
125
350
40
500
1,100
400
2,961
39
3,000
$
Motor
expenses
Cleaning
expenses
$
Sundry
Ledger
expenses account
$
$
$
400
46
125
350
40
500
1,100
165
1,600
400
800
46
350
B2C04T2Q003eng
Phoebe Shek keeps her petty cash book on the imprest system. The cash float is set at $1,500. On 1 December 2008,
the balance of petty cash brought forward was $215. The amount spent in December 2008 was to be reimbursed with
cash at the end of the month. The following transactions took place during December 2008:
2008
Dec 1
"
4
"
5
"
9
" 10
" 11
" 15
" 17
" 18
" 20
" 22
" 26
" 28
" 30
$
Cash received to restore the imprest amount.
Postage stamps
MTR fares
Petrol for the motor car
Stationery
Bus fares
Refund to Winnie Poon, a trade debtor, who had overpaid.
Donation
Cleaning expenses
Settlement of Candy Li’s account in the accounts payable ledger.
Registered letter postage
Refund to Steven Wu, a trade debtor, who had overpaid.
Cleaning expenses
Envelopes
20
150
300
12
100
18
300
200
78
23
22
200
26
Required:
(a) Record the above transactions in a petty cash book with analysis columns for postage, travelling expenses,
cleaning, stationery, miscellaneous expenses and ledger account.
(20 marks)
(b) Complete all necessary double entries for the month of December 2008 in the ledgers.
(5 marks)
Answer:
(a)
Petty Cash Book
Receipt
Date
Details
$ 2008
215 Dec 1
1,285
"
1
"
4
"
5
"
9
1,449
"
"
"
"
"
10
11
15
17
18
"
"
20
22
"
"
26
28
"
30
"
"
$
Balance b/d
Cash
Postage stamps
MTR fares
Petrol for the
motor car
Stationery
Bus fares
Winnie Poon
Donation
Cleaning
expenses
Candy Li
Registered
letter postage
Steven Wu
Cleaning
expenses
Envelopes
31
31
Cash
Balance c/d
2009
Jan 1
Balance b/d
2,949
1,500
Total
20
150
300
Postage
Travelling
expenses
$
$
1,500
2,949
Miscellaneous
expenses
$
$
Ledger
account
1
$
0.5
0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
150
300
12
100
18
300
200
0.5, 0.5
0.5, 0.5
22
0.5, 0.5
0.5, 0.5
200
43
250
400
26
38
600
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
78
23
22
200
26
1,449
$
Stationery
20
12
100
18
300
200
78
23
Cleaning
118
0.5, 0.5
0.5 each
0.5
0.5
0.5
(b)
Cash Book
Date
2008
Dec
"
Details
1
31
Petty cash
Petty cash
Cash
$
1,285
1,449
0.5
0.5
General ledger
2008
Dec 31 Petty cash
Postage
$
43
0.5
2008
Dec 31 Petty cash
Travelling Expenses
$
250
0.5
2008
Dec 31 Petty cash
Cleaning
$
400
0.5
2008
Dec 31 Petty cash
Stationery
$
38
0.5
2008
Dec 31 Petty cash
Miscellaneous Expenses
$
600
0.5
2008
Dec 15 Petty cash
Winnie Poon
$
18
0.5
2008
Dec 26 Petty cash
Steven Wu
$
22
0.5
Candy Li
$
78
0.5
Accounts Receivable Ledger
Accounts Payable Ledger
2008
Dec 20 Petty cash
B2C04T2Q004eng
Write up a two-column cash book to record the following transactions. Then balance it off at the end of the month.
2008
Sept 1
"
"
"
"
"
"
"
"
"
Sept
"
"
"
$
3,925
711
1,200
2,700
8,325
4,230
113
1,620
675
1,125
2,813
225
788
1,800
2,250
Cash balance b/d
Bank balance b/d (Cr)
Bought goods by cheque.
Cash banked.
Clara Hong, a trade debtor, paid us in cash.
Bought furniture and fittings by cheque.
Paid Yuki Ma, a trade creditor, in cash.
Commission received by cheque.
Withdrew cash from the bank for business use.
Paid wages by cheque.
Paid for repairs by cheque.
Cash drawings by the proprietor.
Lucas Chan, a trade debtor, paid us in cash.
Bought stationery in cash.
The proprietor contributed further capital in cash.
3
5
7
11
12
13
19
21
22
23
25
27
30
Answer:
Date
2008
Sept
"
"
"
"
"
"
"
Oct
Details
1
5
7
13
19
25
30
30
Balance b/d
Cash
Clara Hong
Commission revenue
Bank
Lucas Chan
Capital
Balance c/d
1 Balance b/d
15,963
Cash Book
Bank Date
$ 2008
Sept
2,700
"
"
1,620
"
"
"
"
6,434
"
"
"
"
10,754
11,125
Oct
Cash
$
3,925
8,325
675
788
2,250
Details
Cash
Bank
$
1
3
5
11
12
19
21
22
23
27
30
Balance b/d
Purchases
Bank
Furniture and fittings
Yuki Ma
Cash
Wages
Repairs
Drawings
Stationery
Balance c/d
1 Balance b/d
$
711
1,200
2,700
4,230
113
675
1,125
2,813
225
1,800
11,125
15,963 10,754
6,434
B2C04T2Q005eng
Jacky Chan is a sole trader who keeps records of cash and bank transactions in a three-column cash book. The cash
book had the following opening balances as at 1 October 2009: cash $84,000 and bank $44,227. Jacky made the
following transactions in the month of October 2009:
2009
Oct 1
"
3
"
"
"
"
"
"
"
10
14
15
18
19
26
30
A cash sum of $30,000 was received from John Lui, a customer, in full
settlement of his account of $32,100.
Jacky paid $21,850 by cheque to Daisy Chung, a supplier, to settle the account.
The cheque amount was after the deduction of a cash discount of 5% received
from Daisy.
Paid wages of $12,300 by cheque.
Paid $3,220 in cash to setttle the account of Mickey Man, a supplier.
Made cash sales of $54,830.
Deposited $8,000 cash into the business bank.
Paid $32,900 by cheque for salaries.
Cash sales receipts of $13,300 were banked.
Received $40,000 cash from a customer in settlement of his account of $42,000.
Jacky banked the remaining sum after withholding $10,000 for private use.
Required:
(a)
Prepare a three-column cash book to record the above transactions.
(10 marks)
(b)
Balance the cash book as at 31 October 2009.
(c)
Add up the discount columns and post the totals to the correct ledger accounts in the general ledger.
(3 marks)
marks)
Answer:
(a) and (b)
Cash Book
Date
2009
Oct
"
"
"
"
"
"
Nov
(c)
Details
Discount
Cash
$
1 Balances
b/d
1 John Lui
15 Sales
18 Cash
26 Sales
30 Trade
debtor
30 Cash
1 Balances
b/d
2,100
Bank
$
$
84,000 44,227
30,000
54,830
8,000
13,300
2,000
40,000
30,000
Date
2009
Oct
Details
3 Daisy Chung
"
"
"
"
"
10
14
18
19
30
"
"
30 Drawings
31 Balances c/d
4,100 208,830 95,527
157,610 28,477
Discount
$
1,150
Wages
Mickey Man
Bank
Salaries
Bank
Cash
Bank
$
$
21,850
12,300
3,220
8,000
32,900
30,000
10,000
157,610
1,150 208,830
28,477
95,527
1
0.5 each
0.5 each
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5 each
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
General Ledger
2009
Oct 31 Total for the month
Discounts Allowed
$
4,100
Discounts Received
2009
Oct
31 Total for the month
1
$
1,150
1
(2
B2C04T2Q006eng
Johnson, a sole trader, records all his cash and bank transactions in a three-column cash book. The transactions for
the month of December 2009 were as follows:
2009
Dec 1
"
7
"
11
"
13
"
"
"
"
19
23
29
31
Cash in hand $540; bank $6,520 Cr
Paid Andrew Au, a supplier, $450 by cheque in full settlement of the amount
owing of $500.
Received $920 cash from Fanny Lee, a customer, in full settlement of the
amount owing of $1,000.
Advised by Jim Yim, a customer, that he had paid $460 into Johnson’s bank
account in full settlement of the amount due from him of $480.
Paid rent of $700 by cheque.
Paid Judas Yam, a supplier, $330 in cash to settle an account of $340.
Paid salaries of $300 in cash.
Withdrew $200 from the bank for business use.
Required:
(a)
Write up a three-column cash book to record the above transactions.
(b)
Balance the cash book as at 31 December 2009.
(c)
Add up the discount columns and post the totals to the correct ledger accounts in the general ledger.
Answer:
(a) and (b)
Date
2009
Dec
"
"
"
"
Details
1
11
13
31
31
Discount
$
Balance b/d
Fanny Lee
Jim Yim
Bank
Balance c/d
80
20
1 Balance b/d
$
540
920
200
100
2010
Jan
Cash
1,660
1,030
Cash Book
Bank
Date
$ 2009
Dec
"
460
"
"
7,410
"
"
"
7,870
2010
Jan
Details
1
7
19
23
29
31
31
Discount
$
Balance b/d
Andrew Au
Rent
Judas Yam
Salaries
Cash
Balance c/d
$
10
$
6,520
450
700
50
330
300
200
60
1 Balance b/d
Bank
Cash
1,030
1,660
7,870
7,410
(c)
General Ledger
2009
Dec
31 Total for the month
Discounts Allowed
$
100
Discounts Received
2009
Dec
31 Total for the month
$
60
B2C04T2Q007eng
Transactions involving the petty cash book of Minnie Nam's business for the month of May 2008 are as follows:
2008
May
"
"
"
"
"
"
"
"
"
"
"
1
2
3
5
9
10
18
21
28
29
30
31
Petty cash in hand $1,000.
Bought coffee and snacks totalling $334 for the office.
Paid wages of $340.
Paid $130 for postage.
Paid $158 for stationery.
Restored the imprest amount and increased the amount to $1,300.
Bought envelopes and writing paper for $50.
Paid $250 for office carpet cleaning.
Paid $300 for courier charge.
Paid $450 for newspapers and magazines.
Refunded $168 to Kim Chan, a trade debtor, for an overpayment on his account.
Restored the imprest amount to $1,300.
Required:
(a)
Prepare the petty cash book for the month of May 2008 with analysis columns for wages, sundry expenses,
postage, stationery and ledger account and balance the petty cash book as at 31 May 2008.
(b)
Complete all necessary double entries for the month in the ledgers.
Answer:
(a) and (b)
Petty Cash Book
Receipt Date
$
2008
1,000 May
"
"
"
"
1,262
"
"
"
"
"
"
1,218
3,480
1,300
Details
1
2
3
5
9
10
18
21
28
29
30
Balance b/d
Coffee and snacks
Wages
Postage
Stationery
Cash
Envelopes and writing paper
Carpet cleaning
Courier charge
Newspapers and magazines
Kim Chan
"
"
31 Cash
31 Balance c/d
Jun
1 Balance b/d
Sundry
Ledger
Total Wages expenses Postage Stationery account
$
$
$
$
$
$
334
340
130
158
50
250
300
450
168
2,180
1,300
3,480
334
340
130
158
50
250
300
450
340
1,034
430
208
168
168
(c)
Date
Details
2008
Cash Book
Bank Date
Cash
$
$
Details
2008
May
May
10 Petty cash
1,262
"
31 Petty cash
1,218
Wages
$
31
Petty cash
May
31
Petty cash
31
Petty cash
430
Stationery
$
2008
May
1,034
Postage
$
2008
May
340
Sundry Expenses
$
2008
31
Petty cash
208
Accounts Receivable Ledger
Kim Chan
$
2008
May
30
Petty cash
168
Bank
$
General Ledger
2008
Cash
$
B2C04T2Q008eng
Lucy Ip keeps her petty cash book on the imprest system. The imprest amount is $3,000. On
1 October 2009, petty cash in hand was $2,344. The following transactions took place during the month:
2009
$
Oct
1 Petty cash restored to the imprest amount
"
5 Postage stamps
50
"
6 Taxi fares
90
"
8 Petrol for the motor van
300
"
10 Ballpoint pens and paper
200
"
11 Bus fares
15
"
15 Refund to Jimmy Wong for an overpayment on his
87
account in the accounts receivable ledger
"
16 Stamps
100
"
18 Magazines
16
"
21 Motor van repairs
600
"
23 Envelopes
40
"
24 Petrol for the motor van
310
"
28 Courier charge
120
"
31 Cinema tickets for staff
280
Required:
(a)
Record the above transactions in a petty cash book with analysis columns for postage, travelling, motor
expenses, stationery, sundry expenses and ledger account. Show the balance carried down to 1 November 2009
(b)
and the restoration of the cash float.
(20 marks)
Complete all necessary double entries for the month of October 2009 in the ledgers.
(4 marks)
Answer:
(a)
Petty Cash Book
Receipt
Date
Details
$ 2009
2,344 Oct 1 Balance b/d
656
"
1 Cash
"
5 Postage stamps
"
6 Taxi fares
"
8 Petrol for the motor van
" 10 Ballpoint pens and paper
" 11 Bus fares
" 15 Jimmy Wong
" 16 Stamps
" 18 Magazines
" 21 Motor van repairs
" 23 Envelopes
" 24 Petrol for the motor van
" 28 Courier charge
" 31 Cinema tickets for staff
Oct 31 Balance c/d
3,000
792 Nov
2,208
"
1 Balance b/d
1 Cash
Total
$
50
90
300
200
15
87
100
16
600
40
310
120
280
2,208
792
3,000
Postage
$
Travelling
expenses
Motor
expenses
$
$
Sundry
Stationery expenses
$
$
Ledger
account
1
$
50
90
300
200
15
87
100
16
600
40
310
120
270
105
1,210
240
280
296
87
0.5
0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5 each
0.5
0.5
0.5
(b)
Cash Book
Date
2009
Oct
Nov
Details
1 Petty cash
1 Petty cash
Cash
$
656
2,208
0.5
0.5
General Ledger
2009
Oct 31 Petty cash
Postage
$
270
0.5
2009
Oct 31 Petty cash
Travelling Expenses
$
105
0.5
2009
Oct 31 Petty cash
Motor Expenses
$
1,210
0.5
2009
Oct 31 Petty cash
Stationery
$
240
0.5
2009
Oct 31 Petty cash
Sundry Expenses
$
296
0.5
Jimmy Wong
$
87
0.5
Accounts Receivable Ledger
2009
Oct 15 Petty cash
B2C04T2Q009eng
Josephine Tam is a sole trader, selling office furniture on a credit basis. On 1 April 2009, she had $360,000 in the
bank. During the month of April 2009, Josephine Tam:
(i)
Deposited the following sales proceeds into the bank account:
2009
$
Apr 6 Albert Co
33,000 (after deducting a 4% cash discount)
" 15 Billy Ltd
38,950 (after deducting a 5% cash discount)
" 22 Connie Store
36,660 (after deducting a 6% cash discount)
" 28 Dinnie Ltd
35,775
(ii)
Issued the following cheques:
2009
Apr 1 Cash for business use
"
2 Baron Ltd
" 10 Drawings
" 18 Duke Lee
19 Office equipment
20 Earl Co
22 Marquess Ltd
25 Rent and rates
29 Viscount Co
$
50,000
3,700
50,000
8,160 (after deducting a 4% cash discount)
30,000
65,900
54,520 (after deducting a 6% cash discount)
25,400
58,880 (after deducting a 8% cash discount)
(iii) Made the following payments in cash:
2009
Apr 3 Salaries
"
7 Purchases
"
8 Electricity
" 15 Telephone expenses
" 21 Drawings
$
15,500
10,000
3,000
540
10,000
Required:
(a)
Prepare the three-column cash book for Josephine Tam’s business for the month of April 2009. Then balance
off the cash book at the end of the month.
(b)
(17 marks)
Show the discount accounts in the general ledger.
(2 marks)
Note: Transactions must be recorded in date order.
Answer:
(a)
Cash Book
Date
2009
Apr
1
"
1
"
6
"
15
"
22
"
28
Details
Discount Cash Bank
$
$
$
Balance b/d
360,000
Bank
50,000
Albert Co
1,375
33,000
Billy Ltd
2,050
38,950
Connie
2,340
36,660
Store
Dinnie Ltd
35,775
Date
2009
Apr
"
"
"
"
"
"
"
"
"
"
"
"
"
"
May
1
Balances
b/d
5,765 50,000 504,385
10,960 157,825
Details
Discount
$
1
2
3
7
8
Cash
Baron Ltd
Salaries
Purchases
Electricity
10 Drawings
15 Telephone
expenses
18 Duke Lee
19 Office
equipment
20 Earl Co
21 Drawings
22 Marquess Ltd
25 Rent and rates
29 Viscount Co
30 Balances c/d
Cash
$
Bank
1
$
50,000
3,700
0.5, 0.5
0.5, 0.5
0.5 each
0.5 each
0.5 each
50,000
0.5, 0.5
0.5
8,160
30,000
0.5, 0.5
0.5
65,900
0.5
0.5
0.5, 0.5
0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
15,500
10,000
3,000
540
340
10,000
3,480
5,120
10,960
8,940 50,000
54,520
25,400
58,880
157,825
504,385
(b) General Ledger
2009
Apr 30 Total for the month
Discounts Allowed
$
5,765
Discounts Received
2009
Apr
30 Total for the month
1
$
8,940
1
B2C04T2Q010eng
Thomas Lo maintains a three-column cash book. In addition, a petty cash float of $1,000 is also kept for small cash
payments. The following transactions occurred in July 2009:
2009
Jul
1
"
1
"
"
3
5
"
"
"
7
11
12
"
13
"
"
"
"
"
"
"
"
"
19
21
22
22
23
25
27
27
30
"
30
Cash balance
Bank balance
Accounts receivable ledger: Besa Cheung
Kitty Cho
Accounts payable ledger: Lucia Koo
Diana Sit
Petty cash in hand was $234. A cheque was issued to restore the petty
cash float.
A cheque received from a trade debtor.
Bought office fixtures costing $40,000. A deposit of 30% was paid by
cheque, with the balance paid on delivery one month later.
Cash sales receipts
Cash banked.
Besa Cheung settled her account with us by cheque, after deducting a
3% cash discount.
Kitty Cho settled her account with us in cash, after deducting a 5%
cash discount.
Paid insurance by cheque.
Settled our account with Lucia Koo in cash, less a discount of $90.
Paid for electricity in cash.
Cash drawings by Thomas Lo.
Withdrew cash from the bank for business use.
Government rent refund by cheque.
Paid wages by cheque.
Paid rates in cash.
Settled our account with Diana Sit by cheque, less a 4% cash
discount.
All the cash was banked with the exception of $40 that was kept in
the cash box.
$
9,850
12,240
9,000
1,500
800
2,000
1,800
2,160
4,500
1,800
2,250
300
1,440
1,300
1,296
5,400
Required:
(a)
Prepare the three-column cash book for the month of July 2009. Then balance off the cash book at the end of
the month.
(b)
Show the discount accounts in the general ledger.
(17 marks)
(2 marks)
Answer:
(a)
Cash Book
Date
2009
Jul
"
1
3
"
"
"
"
"
"
7
11
12
13
23
25
"
30
Aug
(b)
Details
1
Balances b/d
Accounts
receivable
Sales
Cash
Besa Cheung
Kitty Cho
Bank
Government
rent — Refund
Cash
Balances b/d
Discount Cash Bank
$
$
$
9,850 12,240
1,800
2,160
270
75
4,500
8,730
1,425
1,440
1,300
909
Date
2009
Jul
"
Details
Discount Cash Bank
$
$
$
1 Petty cash
766
5 Office fixtures
12,000
"
"
"
"
"
"
11
19
21
22
22
23
Bank
Insurance
Lucia Koo
Electricity
Drawings
Cash
"
"
"
"
"
27
27
30
30
31
Wages
Rates
Diana Sit
Bank
Balances c/d
345 14,875 29,479
40 11,023
4,500
1,800
90
710
2,250
300
1,440
1,296
5,400
80
1,920
909
40 11,023
170 14,875 29,479
1
0.5 each
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5 each
0.5 each
0.5, 0.5
0.5, 0.5
0.5, 0.5
0.5
0.5, 0.5
0.5
0.5, 0.5
0.5, 0.5
0.5, 0.5
General Ledger
2009
Jul
31 Total for the month
Discounts Allowed
$
345
Discounts Received
2009
Jul
31 Total for the month
1
$
170
1